By Kathryn Donovan, Regional Programs Manager, Northeast Dairy Business Innovation Center
Melanie Harrison at Harrison’s Homegrown, a dairy farm in Addison, Vermont, saw the writing on the wall.
With rising costs, labor shortages, and subpar infrastructure, she and her husband, Patrick, had a choice: continue to patch it together hoping nothing drastic would happen, or take the plunge and make a sizeable infrastructure upgrade that had the potential to relieve pressure on several aspects of their business at once.
They applied for a Dairy Farm Improvement and Modernization grant and received $60,906 to make critical upgrades.
With the funding, they replaced their 1979 double-4 herringbone milking parlor with a new double-7 parabone parlor. While the old parlor required two workers and nine hours of milking per day, the new parlor requires only one worker and has reduced milking hours by over 30%.
Not only did this project alleviate the challenges of limited labor, it also improved worker safety, herd health and milk yield. New automatic take-offs reduced repetitive stress for milkers and improved udder health for their herd of 180. Their cows are now averaging seven more pounds of milk per day, and somatic cell counts are decreasing.
The investment paid itself off within a year.
The Harrison’s savings on labor and electricity totaled over $70,000 in the first year, and they were up $33,000 in first-quarter revenue. The new setup improved quality of life for both workers and farmers, reducing burnout and turnover. “Patrick was spending an average of seven hours a day in the milking parlor himself,” says Melanie. “As business owners, we need to have more time for management-level tasks.”
Technical Assistance is Key to Successful Dairy Farm Modernization
For smaller and midsized family farms, modernizing can feel overwhelming.
Between daily fires to put out, the speed that technology changes, and worries that investments won’t pay off, taking on a modernization project can feel like its own full-time job.
But if the numbers aren’t adding up, something needs to change. Farms are going out of business at an incredibly rapid pace: Vermont had 868 dairy farms in 2015 and by 2025 there were only 439; we have lost 50% of our dairy farms in just 10 years.
Adapting and modernizing are keys to maintaining farms in today’s world.
The good news is that modernization isn’t a one-size fits all approach, nor do farmers need to have all the answers. Technical Assistance (TA) providers can help farmers identify and tailer modernization projects to meet the needs of their operations. Just like farmers trust their nutritionist or vet to make critical animal health decisions, there are many other complex aspects to the overall business that need the same kind of attention and consideration. The big one is finances.
When farmers work with a technical assistance provider, such as extension specialists or farm viability experts, this added perspective and expertise supports farmers to better understand their bottom line, redefine business goals, and set up systems for tracking data that is useful in evaluating how management decisions are paying off. By understanding the true and ongoing conditions of their farm, farmers can make the best investment choices that are customized to them and responsive to what is happening on the ground.
This data-informed decision making can transform farms.
Over the past five years, NE-DBIC has funded 200 dairy farm improvement projects. The most successful ones have embraced this data-centric approach with TA support.
While modernizing can mean investing in new technology, like robots, it doesn’t have to. Straightforward equipment upgrades to aging bulk tanks, pipeline, or milking parlors greatly improve milk quality, cost savings, and labor efficiencies. Investments in cow comfort improves herd health and increases milk production and quality. Smaller, smarter tech investments can quickly pay for themselves. Many farms are adopting cow monitoring technology, which helps identify health issues before symptoms appear, accurately detect heats, and provide data on nutrition and heat stress. This technology reduces labor demands and allows farmers to make timely decisions, improving overall farm management.
For those struggling with labor shortages, robots can be a very effective investment. Feed-pushing robots can reduce feed waste and improve nutrient uptake; manure robots can work very effectively in some barns and keep cows cleaner and healthier; and milking robots can provide real time milk component information and detect health issues.
In 98% of modernization projects funded through DBIC, farmers report an improved outlook on their business’s future after implementing their improvements.
They reported lasting benefits in sales, revenue, and employee retention. Farmers who engaged with TA providers both in the development of their project and throughout the course of their project often maintained those relationships to identify and make additional improvements.
By using data to identify areas for improvement, farms can make informed decisions that lead to better management and efficiency. The NE-DBIC values the importance of supporting small and midsized farms, helping them modernize and become more efficient to stay viable and improve financial health.
This fall, we will open our next round of Dairy Farm Improvement and Modernization Grant.
It’s an excellent time for farmers interested in modernizing to start working with technical assistance providers to determine the best improvements for their business.
Grants for farm modernization will fund projects between $15,000 – $100,000. This program is in high demand and applicants who show engagement with a TA provider and clear data-backed justifications for their desired modernization are prioritized for funds.
Learn more about this grant program: Dairy Farm Improvement & Modernization Grant.
